Fire Insurance

FIRE SEASON IS HERE…ARE YOU READY?

Unfortunately, when it comes to rebuilding your home, things don’t cost what they used to. The price of labor and materials has increased. Your current insurance policy may not reflect today’s construction costs.

Additionally, the recent wild fires caused many insurance companies to reassess which homes they will continue to insure. It is becoming more and more common for insurance carriers to drop home policies when the property is located within 2500 feet to fire hazard/brush areas. Once your home’s location is identified as a high exposure risk, your policy may be canceled…. regardless of how long you’ve been insured with the same company.

When an insurance company decides not to renew a policy, your lender is notified. The home owner must immediately find another carrier that will insure this “risk”; otherwise the lender will buy insurance on the home. This is called “force placed” insurance and can be VERY EXPENSIVE. One of our client’s rates jumped from $150/mo to $900/mo with force placed insurance. We were able to issue a policy for about $130/mo.